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Scott’s House Call: Millennial Party

Buying a home is a life-changing decision, and first-time homebuyers have a lot of questions. How do you know when it’s time to buy? What house is the right house? Should you buy with a partner?How do you start making decisions when there are so many decisions that need to be made? Scott’s employee Taylor has these types of questions, and so do all her friends. So they’ve organized a backyard potluck and invited Scott to join them. In exchange for a fun afternoon and some great food, these eager millennials are hoping Scott will impart some of the wisdom he’s acquired over his 15 years of successful real estate investing.

Taylor and her friends are all in different places financially, but they’re similar in that they’re all a few years into their careers and ready to make some sort of major investment. Scott was able to offer some helpful advice to suit each of their specific situations. If you know a millennial who is facing the same kind of decisions, check out Scott’s tips below.

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Buying a house, whether it’s to live in, to rent out, or a combination of the two, involves research, research, and more research. Ask yourself the following questions and make sure you’re satisfied with the answers before you make a decision.

What are your needs? This involves the home itself (size, number of bedrooms, bathrooms, parking, outdoor space etc.) as well as the neighborhood (proximity to work, schools, hospitals, highway access, park access, etc.).

Why are you buying? Is it because you want a place to call your own; you have the money and want to make an investment; you’re trying to secure your future? Make sure you’re comfortable with the answer before you make a move.

What’s the purpose of the home? Is it a family home, an investment or both?

Are you willing to rent out part of the home in order to lessen the financial burden? If so, will it be a dedicated income suite or will you have a roommate?

Have you done a “practice mortgage”? Put aside the amount of a mortgage payment every month while you’re renting or still living at home in order to get used to it. After a year of doing this not only will you be more confident in what you can pay, you’ll have an extra chunk of money to put towards your down payment.

Have you spent time researching areas and monitoring sales? An area you can afford to rent in, you may not be able to afford to buy in. Keep an eye on what homes are selling for so that you have realistic expectations.

Resources:

Owners.com – Most people are unprepared when they go to buy a house, and there’s no reason for this to be the case. Owners.com has all the tools you need to find the right home at the right price in the right neighborhood – and it can all be done from your phone. With Owners you can watch listings and search on your own, but you can also get practical help from local realtors who can help you find the right home, put together your offer, and give you insight into the neighborhood. You may also qualify for a rebate of up to 1.5% on closing.

CIBC Mobile Solutions – Financing a first property requires in depth knowledge and easy access to your financial information. Since millennials (and pretty much everyone else these days) are known for being attached to their phones, a mobile banking app is a no-brainer. With CIBC’s mobile apps you can pay bills, send and receive money, open accounts, and even get pre-approved for a mortgage.

Home Buying Quiz – Not sure if you’re ready to take the plunge? Before you purchase a home, you need to be ready to deal with the financial requirements and obligations. Take Scott’s quiz to see where you stand.

First Time Homebuyer Checklist – There’s a lot that goes into choosing a property – particularly a first property. Make sure you’ve checked all the boxes before putting in an offer.

5 Reasons Not to Buy a House – Getting into the real estate market is usually a great idea, but making money in real estate is not always given. For many millennials the pressure to buy a house can be pretty intense. If you’re thinking of taking this huge step make sure you’re doing it for the right reasons.

Scott’s Last Word…

“Real estate is evolving big time, and millennials are the first group to have access to all the new technology their first time out. Brokerage sites like Owners, and banks like CIBC, are offering home buyers more options than ever before, and for Taylor and her friends, the ability to do everything online is an absolute necessity. I was pleased to see that they’re all very conscious of the risks that come with real estate investing, but also working to understand how best to reap the rewards – of which there are many. With all the information they need available with the click of a button, I’m confident that this group will follow through and see great results.”

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